Strong grocery sales and back-to-school spending failed to help retail market in August

PUBLISHED: 08:39 04 September 2018 | UPDATED: 08:39 04 September 2018 Retail sales slowed in August despite a boost from warm weather and back-to-school spending. Picture: Victoria Jones/PA Wire Retail sales continued to slow in August despite warm weather-fuelled grocery spending and back-to-school purchases. Figures from the British Retail Consortium (BRC)-KPMG sales monitor showed retail sales increased by 0.2% on a like-for-like basis compared to the same month in 2017. This compares to a rise of 0.5% in July, when buoyant spending on food and drink delivered a welcome reprieve to the beleaguered sector. Total sales also dipped, falling from 1.6% in July to 1.3%. Parents’ spending on children’s clothes and computers helped boost the sector, but it meant that hard-pressed consumers were less likely to splurge on items like clothing and footwear. Don Williams, retail partner at KPMG, said: “Overall retail spending held up in August, but only just. “Whilst any growth is welcome in the current environment, structural changes within the industry continue and there is clearly diverging performance across categories and retail business models. “Despite temperatures cooling off, the summer sunshine continued to fuel grocery sales. “Elsewhere, the prospect of returning to school boosted sales of children’s clothes and computers, although stationary appeared overlooked for the time of year.” The BRC added that food sales were also driven by inflation, which has soared since the Brexit-induced collapse in the pound. The retail sector has been beset by several high-profile administrations and store closure programmes this year. House… [Read full story]